Microsoft Crushes Quarterly Earnings As Revenue Grows 22%

Microsoft (NASDAQ:MSFT) shares rose 2% higher after the software and hardware maker reported fiscal first-quarter earnings that crushed analysts’ estimates.

Microsoft’s earnings came in at $2.27 U.S. per share versus $2.07 U.S. that was expected by analysts, according to Refinitiv data. Revenue totaled $45.32 billion U.S. compared to $43.97 billion U.S. that was forecast.

Total company revenue climbed 22% higher year-over-year. That’s the fastest growth rate for Microsoft since 2018. Microsoft reported $20.5 billion U.S. in net income, a growth rate of 48%.

With respect to guidance, Microsoft called for $50.15 billion U.S. to $51.05 billion U.S. in its fiscal second-quarter revenue. That works out to $50.60 billion U.S. at the middle of the range, passing the $48.92 billion U.S. consensus among analysts polled by Refinitiv.

Microsoft’s Intelligent Cloud segment — which comprises the Azure public cloud, enterprise services, GitHub, SQL Server, System Center, Visual Studio and Windows Server — delivered $16.96 billion U.S. in revenue, which was up 31% year-over-year.

Microsoft said Azure and other cloud services grew 50% in the quarter from a year earlier. Microsoft’s Azure public cloud revenue growth was expected to be 47%.

The Productivity and Business Processes unit, which includes Dynamics, LinkedIn and Office, contributed $15.04 billion U.S. in revenue, up 22% from a year ago.

The company’s More Personal Computing business, including Windows, devices, gaming and search advertising, posted $13.31 billion U.S. in revenue, up 12%.

Microsoft’s stock has gained 39% so far in 2021, while the S&P 500 index is up about 22% on the year.